Psychoblues
12-17-2008, 03:53 AM
Now, this is unique!!!!!!!!!!! The heavily collateralized and powerful auto loan departments have always been averse to credit union collaborations!!!!!!!!!!!!!
Alisa Priddle / The Detroit News
Chrysler LLC is following the lead of General Motors Corp. by making $22 billion in credit available to 25 million customers in a partnership with 2,500 credit unions in 12 states.
Chrysler has signed a more broadly based contract than GM did last week to help consumers who cannot get credit to buy or lease a vehicle in today's tightened lending market. Credit union loan rates average 5.4 percent compared with 6.9 percent for average bank rates, according to Datatrac, a survey company that tracks loans.
In addition to adding eight states to the deal GM initiated, Chrysler will offer a larger amount up front: $500 to $1,000 depending on the vehicle, layered on top of other incentives, to customers who use credit union financing. The discount will be applied at the time of sale by dealers who will have a list of eligible credit unions.
Ed Broadbear, Chrysler director of incentives and programs, said the deal applies to all 2008 and 2009 vehicles in inventory, with the exception of the Dodge Sprinter commercial van and SRT performance vehicles.
Last week, GM announced the "Invest in America" initiative with the Michigan Credit Union League to offer new or current members of 1,200 credit unions in four states access to lower loan rates and about 4.5 percent off manufacturer's suggested retail price. The program made $10 billion in auto loans available to car buyers.
GM's bonus cash offer is for $250.For both companies, the deal with the Michigan League runs through June 2009.
At GM, the program applies in Michigan, Illinois, Indiana and Ohio. GM spokesman John McDonald said the automaker will monitor it before deciding whether to expand nationally. The eight states Chrysler has added include: Oklahoma, Texas, Kentucky, Arkansas, Tennessee, Louisiana, New Mexico and Mississippi.
The League also is in "active talks" with Ford Motor Co. about participating, which could join soon, said Dave Adams, chief executive of the Michigan League. Details are still being worked out.
Meanwhile, Michigan credit unions have been fielding calls from interested members, said Michigan League spokesman Luke Capizzo. It is too early to see any impact in the showroom, McDonald said.
Broadbear said incentives have not lost their usefulness, noting they have contributed to sales and increased market share at Chrysler.
The slowdown in sales has been the lack of affordable financing, said Adams, who noted the not-for-profit structure of the 8,000 credit unions across the country helped avoid the sub prime meltdown and thus there is $160 billion in available loans for its 90 million members, some of whom might not qualify for loans from other lending institutions.
Adams said the www.lovemycreditunion.org Web site received about 350,000 hits last week after news of the GM program.
There are no plans to offer financing to carmakers beyond the Detroit Big Three as the focus of the initiative is to boost the domestic automakers, Adams said.
Much More: http://www.detnews.com/apps/pbcs.dll/article?AID=/20081216/AUTO01/812160428
Ain't genuine competition amazing!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !
:beer::cheers2::beer:
Psychoblues
Alisa Priddle / The Detroit News
Chrysler LLC is following the lead of General Motors Corp. by making $22 billion in credit available to 25 million customers in a partnership with 2,500 credit unions in 12 states.
Chrysler has signed a more broadly based contract than GM did last week to help consumers who cannot get credit to buy or lease a vehicle in today's tightened lending market. Credit union loan rates average 5.4 percent compared with 6.9 percent for average bank rates, according to Datatrac, a survey company that tracks loans.
In addition to adding eight states to the deal GM initiated, Chrysler will offer a larger amount up front: $500 to $1,000 depending on the vehicle, layered on top of other incentives, to customers who use credit union financing. The discount will be applied at the time of sale by dealers who will have a list of eligible credit unions.
Ed Broadbear, Chrysler director of incentives and programs, said the deal applies to all 2008 and 2009 vehicles in inventory, with the exception of the Dodge Sprinter commercial van and SRT performance vehicles.
Last week, GM announced the "Invest in America" initiative with the Michigan Credit Union League to offer new or current members of 1,200 credit unions in four states access to lower loan rates and about 4.5 percent off manufacturer's suggested retail price. The program made $10 billion in auto loans available to car buyers.
GM's bonus cash offer is for $250.For both companies, the deal with the Michigan League runs through June 2009.
At GM, the program applies in Michigan, Illinois, Indiana and Ohio. GM spokesman John McDonald said the automaker will monitor it before deciding whether to expand nationally. The eight states Chrysler has added include: Oklahoma, Texas, Kentucky, Arkansas, Tennessee, Louisiana, New Mexico and Mississippi.
The League also is in "active talks" with Ford Motor Co. about participating, which could join soon, said Dave Adams, chief executive of the Michigan League. Details are still being worked out.
Meanwhile, Michigan credit unions have been fielding calls from interested members, said Michigan League spokesman Luke Capizzo. It is too early to see any impact in the showroom, McDonald said.
Broadbear said incentives have not lost their usefulness, noting they have contributed to sales and increased market share at Chrysler.
The slowdown in sales has been the lack of affordable financing, said Adams, who noted the not-for-profit structure of the 8,000 credit unions across the country helped avoid the sub prime meltdown and thus there is $160 billion in available loans for its 90 million members, some of whom might not qualify for loans from other lending institutions.
Adams said the www.lovemycreditunion.org Web site received about 350,000 hits last week after news of the GM program.
There are no plans to offer financing to carmakers beyond the Detroit Big Three as the focus of the initiative is to boost the domestic automakers, Adams said.
Much More: http://www.detnews.com/apps/pbcs.dll/article?AID=/20081216/AUTO01/812160428
Ain't genuine competition amazing!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !
:beer::cheers2::beer:
Psychoblues